Some novice investors may feel a little jealous when they see a licensed realtor. Easy access to MLS … no need to wait for someone else to visit the property … the benefits seem obvious. Yes, there are some drawbacks (such as having to work under a broker), but the benefits of a real estate license are real.
Real estate licenses are not required for all investors, but some consider them to be an important part of their investment strategy. However, obtaining a license can be a lengthy process, including course work, exams, and background checks. Of course, you need to find a broker. Learn more about what distinguishes the average agent from a good agent, and get all the details about licensing in a detailed guide. How to Become a Real Estate Agent — Investor Guide..
Detailed guide Disadvantages of real estate licenses I will show you the negatives.Now we talk here advantage Of the license. Why do investors need to experience the cost of coursework, testing, and licensing? This is the reason.
1. MLS access
If you have a real estate agent license, you can legally and legally access Multiple Listing Services (MLS).
This has two major benefits for creative investors. One is to be able to watch your neighborhood carefully and find new properties the moment they hit the market. You don’t have to wait for the agent to find the property for you. You also don’t have to wait for a public website like Zillow to get the data.
Then you can mine a treasure trove of historical data. MLS provides detailed information on pricing and rewards. Yes, some of them are also available on websites such as Trulia, Redfin, Zillow and LoopNet, but MLS is and will continue to be the gold standard.
There are some questions that MLS can answer for you:
- How many homes did you sell last year that meet my investment criteria? Don’t waste your time looking for something that doesn’t exist.
- What were the offer and sale prices for similar properties? This will help you save money when making an offer.
- What are the seasonal trends in prices for properties in a particular area or type? In some cities, areas with good school districts can fluctuate between $ 30 and $ 50 per square foot from winter to summer. Parents do not want to move their children in the middle of the school year.
- How much does the owner rent? If you plan to make a low-priced offer, you can pull out a record that gives you a good idea of what they are renting at home-and they can afford to take even less. whether.
- How many days do you think it will take for the property to hit the market? Do you need to make an offer right away or do you have time?
- Who owns a particular property? Also, what is your address if you don’t currently live there? You can send them a letter to see if they want to sell.
Whether you buy or sell, licensed investors have the power to make the work of other agents as easy as possible. Listing agents will be very happy to be able to handle turning on utilities for inspections, completing additional paperwork, coordinating with closing attorneys, and managing title searches.
Volunteers who go beyond their obligations. Do everything with your help so that other agents feel you are easy to handle.
Agents that do not get in the way to make the work of other agents as easy as possible will be rewarded with close relationships. And these close relationships are essential to a strong real estate investment strategy. People will transfer leads and tips to you if they are highly valued within the community.
I don’t want to overemphasize this point. Fees are one of the less important benefits of licensing. But that doesn’t mean it’s not good.
As an agent, you can collect trading commissions. For example, if you buy a $ 100,000 home and each agent receives a 3% commission, you’ll raise $ 3,000. After paying the broker fee, you can deduct $ 2,500 from $ 1,500. (The brokerage fee varies greatly depending on which broker you license to.)
4. Real estate industry education
Real estate licenses help you get started with a real estate learning experience right away. Take a class of about 12-14 weeks and learn everything to succeed as a real estate agent.
You’ll also learn about branding, marketing, lead generation, contracts, buyer conversations, seller conversations, compliance, and more. Unfortunately, there are many real estate investors who do not understand these basics.
This process also helps teach you how to do real estate the right way. There are many cowboys who don’t know what they are doing. They break rules and regulations on a daily basis. It makes all other legitimate real estate investors look bad.
5. Risk minimization
When you get your real estate license, you will have to nail that license under a broker. Guess who oversees your real estate transaction, make sure you comply with all laws and regulations, and make sure you’re not doing anything dubious?
Your Real Estate Broker — You have a real estate broker license and insurance.
A licensed agent has a person who oversees all work, which reduces the risk of legal issues and proceedings. In addition, you can meet multiple people throughout the licensing process. The more people you speak consistently, the broader your mind and the more educated your decisions will be. Therefore, there are fewer mistakes and less risk.
6. Reduces the hassle at startup
Once you get your real estate license, you know how to do things the right way. You have built your network, and you have met many realtors. Now you have a genuine real estate business.
Your broker should have full-fledged support staff at your disposal to assist you in everything related to agents. Compliance, transaction coordination, contract reviews, web design, marketing, lead generation, buyer-seller discussions, training and education-all of which are readily available.
Without this, real estate can look like a jungle, especially for beginners. I don’t know where to start, who I want to talk to, or where to go. Real estate licenses put you on the right track.
Another advantage of being a real estate agent, especially one licensed by the National Association of Real Estate Agents, is that clients and other investors know that you work in accordance with the Code of Ethics. Realtors even have a stricter banned code of ethics than the actual law. If you are not acting as a real estate agent, but are just trying to buy real estate, you must follow this code.
It’s much easier as a realtor if part of your investment strategy involves contacting market sellers and convincing them that you can trust them. Direct them to your website and show them how long you have been in the business.
8. Early access
With a real estate license and local MLS membership, you can enter any property you like. If the property is advancing rapidly, you can go see it that day and beat the rush.
In addition, most listing agreements are signed two to four weeks before the property hits the market. Because marketing real estate is expensive and time consuming, most agents can contact their contacts first and sell it before spending a lot of time and money marketing. You want to be in that group.
For a successful real estate investor, the number one job is not to make a little cash on the side. Your job is to find and secure the best new deals. Direct access to MLS will help you find your transaction. And talking directly to other agents and giving them any reason to like you may help you secure a deal.
Is there any other reason people have to get their real estate license?
I would like to ask from the following.